Metals & Mining Conference John W. Eaves Chief Executive - PowerPoint PPT Presentation

February 26, 2019 2019 BMO Global Metals & Mining Conference John W. Eaves Chief Executive Officer

2 Investor Presentation Forward-looking information This presentation contains “forward -looking statements” – that is, statements related to future, not past, events. Forward-looking statements address our expected future business and financial performance including our financial projections and often contain words such as “believes”, “could”, “should”, “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” or “will . ” Forward-looking statements by their nature address matters that are, to different degrees, uncertain and depend upon important estimates and assumptions concerning our financial and operating results, including with respect to our coal pricing expectations, many of which are subject to change. No representations or warranties are made by us as to the accuracy of any such forward-looking statements. The inclusion of this information should not be regarded as an indication that we consider it to be necessarily predictive of actual future results. The information contained herein reflect numerous estimates and assumptions with respect to coal market conditions, general economic conditions, weather conditions, natural gas prices, competition in our industry, production capacity, availability of surety bonds, and matters other matters specific to our business, all of which are difficult to predict and many of which are beyond our control. Uncertainties arise from changes in the demand for and pricing of our coal by the domestic electric generation industry; from legislation and regulations relating to the Clean Air Act and other environmental initiatives; from operational, geological, permit, labor and weather-related factors; from fluctuations in the amount of cash we generate from operations; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. There is significant risk that our current estimates and assumptions may not be accurate and that our actual results will vary significantly from our anticipated results. Readers are cautioned not to rely on the forward-looking statements contained herein. We do not undertake to update our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. For a description of some of the risks and uncertainties that may affect our future results, you should see the risk factors described from time to time in the reports we file with the Securities and Exchange Commission. This presentation includes certain non-GAAP financial measures, including, Free Cash Flow, Adjusted EBITDA, Adjusted EBITDA and cash costs per ton. These non-GAAP financial measures are not measures of financial performance in accordance with generally accepted accounting principles and may exclude items that are significant in understanding and assessing our financial results. Therefore, these measures should not be considered in isolation or as an alternative to net income from operations, cash flows from operations, earnings per fully-diluted share or other measures of profitability, liquidity or performance under generally accepted accounting principles. You should be aware that our presentation of these measures may not be comparable to similarly-titled measures used by other companies. A reconciliation of these financial measures to the most comparable measures presented in accordance with generally accepted accounting principles has been included at the end of this presentation.

3 Investor Presentation Arch Coal in brief  Arch is a large and growing U.S. producer of high-quality metallurgical coals, and the leading global supplier of premium, High-Vol A coking coal – We operate large, modern coking coal mines at the low end of the U.S. cost curve – Our product slate is dominated by High-Vol A coals that earn a market premium – Our Leer South growth project will further solidify our position as the leading global supplier of High-Vol A coal – We have exceptional, long-lived reserves that provide significant and valuable optionality for long-term growth  Arch’s strong coking coal position is supplemented by a top-tier thermal franchise – We operate highly competitive mines in the Powder River Basin and other key supply regions – Our mines have modest capital needs and generate significant free cash  Arch has deep expertise in mining, marketing and logistics – and, critically, in mine safety and environmental stewardship – and levers those competencies in both steel and power markets  Arch has an exceptionally strong balance sheet, generates high levels of free cash and is committed to returning excess cash to shareholders via a proven and highly successful capital return program

Investor Presentation 4 We operate a streamlined portfolio of large, modern, well-capitalized and low-cost mines that can generate free cash flow at all points in the cycle POWDER RIVER BASIN: METALLURGICAL: BLACK THUNDER LEER COAL CREEK LEER SOUTH* SENTINEL MOUNTAIN LAUREL OTHER THERMAL: BECKLEY WEST ELK VIPER COAL-MAC HEADQUARTERS * Note: Leer South is a 3-million-ton-per-year, High-Vol A longwall mine currently under development on the 200-million-ton Leer reserve base

5 Investor Presentation Arch has returned $640 million of capital to shareholders since May 2017 CHANGE IN SHARES OUTSTANDING CAPITAL RETURNED TO SHAREHOLDERS ( IN MILLIONS) ( IN MILLIONS) $327 $313 $24 7.2 $31 million shares repurchased $640 million since May 2017 17.8 returned to shareholders since capital $302 million shares $282 return program’s inception in May 2017 outstanding at 12/31/18 2017 2018 2017 2018 Arch has bought back 29% of its total shares outstanding in past seven quarters Buybacks Dividends

Arch’s Premier Coking Coal Franchise

Investor Presentation 7 Arch is a large, low-cost, growing global coking coal producer with the world’s most valuable High -Vol A coking coal franchise ARCH’S COKING COAL PRODUCT SUITE ESTIMATED U.S. COKING COAL OUTPUT BY PRODUCER, 2018 (IN MILLIONS OF TONS) (PERCENTAGE OF EXPECTED 2019 SALES) Leer 12.0 HIGH-VOL A LOW-VOL Pro Forma Low-Vol 10.0 w/ Leer South 8.0 High-Vol A High-Vol B 6.0 4.0 2.0 0.0 With the startup of Leer South, the percentage of High-Vol A coal in Peer 1 Arch Peer 2 Peer 3 Peer 4 Arch’s mix will approach 75 percent and its High -Vol A output will climb to ~ 7 million tons, or nearly 30 percent of total global supply Source: Arch and MSHA Peer group includes Blackhawk, Contura, Coronado, Warrior (listed here alphabetically)

Investor Presentation 8 Arch is continuing to penetrate new markets and expand the global reach of its high-quality coking coal product suite COUNTRY 00 North ARCH’S 2018 COKING COAL SHIPMENTS BY GEOGRAPHIC REGION Arch has a highly strategic, America 36-percent equity interest in COUNTRY Dominion Terminal Associates (DTA) Europe 44% 00 in Newport News, Va. Asia 27% 13% Canada Rest of World 80% Brazil 9% U.S. 8% Map reflects Arch’s historical global customer base

Investor Presentation 9 U.S. High-Vol A coal is earning an expanding premium in the marketplace SPREAD BETWEEN U.S. HVA AND U.S. LV SPREAD BETWEEN U.S. HVA AND U.S. HVB SPREAD BETWEEN U.S. HVA AND PREMIUM HCC (QUARTERLY AVERAGE, IN $ PER TON) (QUARTERLY AVERAGE, IN $ PER TON) (QUARTERLY AVERAGE, IN $ PER TON) $20 $70 $60 $60 $15 $40 $50 $10 $20 $40 $5 $0 $30 $0 -$20 -$5 $20 -$40 $10 -$10 $0 -$60 -$15 Q1-13 Q3-13 Q1-14 Q3-14 Q1-15 Q3-15 Q1-16 Q3-16 Q1-17 Q3-17 Q1-18 Q3-18 Q1-13 Q3-13 Q1-14 Q3-14 Q1-15 Q3-15 Q1-16 Q3-16 Q1-17 Q3-17 Q1-18 Q3-18 Q1-13 Q3-13 Q1-14 Q3-14 Q1-15 Q3-15 Q1-16 Q3-16 Q1-17 Q3-17 Q1-18 Q3-18 U.S. High-Vol A versus U.S. Low-Vol  U.S. High-Vol A has traded at a premium to U.S. Low-Vol in 14 of the past 24 quarters, including each of the last four, and achieved an average premium of nearly $12 per metric ton in 2018 U.S. High-Vol A versus U.S. High-Vol B  The premium that U.S. High-Vol A has achieved relative to U.S. High-Vol B has increased markedly in recent years, averaging nearly $43 per metric ton in 2018 versus just $6 per ton in 2015 U.S. High-Vol A versus Australian Premium Hard Coking Coal  U.S. High-Vol A has earned a premium over Australian Premium Hard Coking Coal in 11 of the past 24 quarters, with the Aussie product achieving a modest, $6 per metric ton higher price on average over that timeframe Source: Platts, Internal

Leer South: Arch’s next world -class High-Vol A longwall mine

Investor Presentation 11 Leer South will be nearly identical to Arch’s world -class Leer mine Leer Leer South 10 Years 20 Years Mine life Mining technique Longwall Longwall Lower Kittanning Lower Kittanning Seam ~ 62 inches 1 Seam thickness ~ 65 inches ~ 6,700 feet ~ 9,000 feet Average panel length 3 million tons 3 million tons Annual met output Product quality High-Vol A High-Vol A Low-$50s Low-$50s Projected cash cost Export facilities Baltimore / DTA Baltimore / DTA 1 Reflects Leer mine’s average seam thickness to date; starting in 2020 and thereafter, the average seam thickness at Leer will expand to more than 72 inches Note: Excluding the reserves in the mine plans for Leer, Sentinel and Leer South, Arch will still have ~ 150 million tons of undeveloped reserves in the Tygart Valley reserve block.